Home › The Cardinal Nation Forums › Open Forum › Anti-trust exemption
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April 20, 2021 at 4:32 am #158639
There is some rumbling in Congress to remove the anti-trust exemption. Saw the story on the Fox news site this morning. Apparently is a response to moving the all star game. I had mentioned this subject in the all star game thread which is locked out now so mentioning it here.
April 20, 2021 at 7:26 am #158646If people want to talk anti-trust, this thread will continue. But if it is turned into another political, name-calling mess, this thread will be shut down faster than the last one. It is up to you all…
April 20, 2021 at 8:24 am #158650What exactly does the anti-trust exemption allow MLB to do that would dramatically change if they lost it?
I should probsbly know this but I don’t.
Would it be really, really bad if they lose it?
April 20, 2021 at 8:33 am #158652The following article provides good background detail. In its essence, it allows MLB teams to conspire in areas such as salaries, team territories and merchandising. These would not be legal for competitors to work together on in other US industries.
My take on if they lost the exemption, it would increase operating costs for owners, perhaps quite substantially. Players would likely benefit.
https://www.sportico.com/law/analysis/2021/mlb-antitrust-exemption-1234626810/
April 20, 2021 at 8:55 am #158654For the reasons this bill was announced I don’t seeing it making the light of day in the current Congress.
April 20, 2021 at 9:08 am #158655Not getting any more political than necessary, but members of Congress might be hesitant to be seen as protecting a bunch of super rich millionaires by letting them keep the exemption.
April 20, 2021 at 9:56 am #158659This issue has come up several times in the past. Members of Congress of both parties have tried to get rid of the exemption over the years depending on what the issue of the day was. The members trying to get rid of it now wouldn’t want to for other reasons which tells me this is totally political and has little to do with business.
I would be for it if it helped clean up this mess over TV rights. MLB needs to come into the 21st century on that.
April 20, 2021 at 2:14 pm #158678I have read some articles that have said while Judge Holmes was a terrific justice, he messed up on the MLB ruling in 1922. It was one of the few that he got wrong. And over the years MLB’s anti-trust exemption has slowly been trimmed back. With other professional sports leagues not having the same protection, it is only a matter of time before MLB loses it altogether.
This current attempt being driven by partisan politics likely will not go far. It will take the effort of a group who present only the facts and how the exemption is creating unfair advantages for certain parties, especially parties that already have a lot of power, for this to be truly heard in an independent manner and overturned.
April 20, 2021 at 2:45 pm #158682It will take the effort of a group who present only the facts and how the exemption is creating unfair advantages for certain parties, especially parties that already have a lot of power, for this to be truly heard in an independent manner and overturned.
Most likely this is true, Mike. “Enemy of my enemy is my friend” comes to mind. Some who’d normally clamor to stick it to MLB won’t stand for it at this time.
Also, I’m not sure the players stand to be net gainers if the Sherman Act is fully applied. Getting a bigger proportion of the pie does not mean more pie if the pie shrinks, e.g., 50% of 10 < 45% of 12.
April 20, 2021 at 5:53 pm #158685Good comments, Euro. I don’t think the players would gain a lot either if the exemption is retracted. They have already greatly benefitted when “ownership for life” was struck down.
Once MLB becomes beholden to federal oversight, it will be interesting to see what changes. The one thing I want to see done away with is the local blackout of television broadcasts on streaming services. I imagine that will go down in flames, in the interest of increased competition.
April 20, 2021 at 8:19 pm #158727Bicyclemike, not sure that would be the case. The NFL has a black out policy and they do not have the exemption MLB has. The rule will probably stay, but MLB may have to amend their black out rule to better align with the NFL’s.
April 20, 2021 at 8:20 pm #1587281982 willieParticipantI’m all for all these big companies like mlb or other tech giants losing protections and having to face the music for their actions. That’s basically what this is about.
April 21, 2021 at 8:48 am #158780This current attempt being driven by partisan politics likely will not go far. It will take the effort of a group who present only the facts and how the exemption is creating unfair advantages for certain parties, especially parties that already have a lot of power, for this to be truly heard in an independent manner and overturned.
Well stated mike. If/when MLB loses their anti-trust exemption it should be because of unfair business practices, not because of political statements.
April 21, 2021 at 9:12 am #158784Well stated mike. If/when MLB loses their anti-trust exemption it should be because of unfair business practices, not because of political statements.
I agree. The danger to MLB owners is if it becomes bi-partisan at some point. I do not think that is out of the question.
April 21, 2021 at 12:44 pm #158808Interesting article.
I will say that MLB should probably not involve themselves in political issues of they do not want to be involved in political tug of wars.
Just play ball, stay in your lane, and take care of YOUR business.
April 21, 2021 at 4:08 pm #158828Bicyclemike, not sure that would be the case. The NFL has a black out policy and they do not have the exemption MLB has. The rule will probably stay, but MLB may have to amend their black out rule to better align with the NFL’s.
I did not realize the NFL has a blackout policy. At least here in Denver we get the Broncos games every week, home and away, on the local over-the-air channels. If the game is on ESPN or NFL network, a local affiliate will air it.
Seems like they had something at one time that if the game was a sellout, the blackout was lifted. The Broncos sell out every home game, but we get the road games as well. Not sure about other markets though.
April 21, 2021 at 4:51 pm #158834The NFL has suspended its blackout policy since 2015. They do not blackout games.
April 21, 2021 at 5:34 pm #158843The big difference in this aspect of the comparison is that the NFL has exclusive national TV contracts, while individual MLB teams control the rights in their home markets.
April 21, 2021 at 6:19 pm #158852ZTR, not sure I agree. Where would we be today if Branch Rickey and the Dodgers did not sign and promote Jackie Robinson to the major leagues? I would say that was a political issue that MLB took a stand on.
April 21, 2021 at 6:21 pm #158853The big difference in this aspect of the comparison is that the NFL has exclusive national TV contracts, while individual MLB teams control the rights in their home markets.
Which is a big advantage for large market teams over the smaller markets.
There is also a difference in the dynamics. Football is a once-a-week event that is perfect television entertainment. Baseball is a daily grind that does not work well on network television – not for every day airing that is.
April 21, 2021 at 7:17 pm #158866The biggest difference is that the NFL doesn’t do blackouts.
April 21, 2021 at 11:04 pm #158878Robinson was a hell of a player that helped his team win a ton of games.
That is a lot different than what is going on today.
April 24, 2021 at 10:25 am #159035My .02$, the people with capital make the mlb, not the players, sorry but its true.
You can certainly argue some players are undervalued/paid, but this isnt US Steel. If you dont want to be involved with the mlb dont consume it, and let’s certainly not involve anyone in the cesspool that is DC.
That being said I feel far worse for the fans’ wallets than the players, and its not even close.
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